Had Marketplace insurance on self 2023, 2024. Got married 2024. Canceled coverage as of marriage. Why is there penalty. Income calc for me alone was legit.

[memarvin1977]

I had same income as in 2023 up to the marriage. Upon marriage I canceled. There is no cause for a penalty. Using her income to change the entire year calculation is fundamentally wrong and the software should be adjusting for that and when/if advance tax payments still continue.

[SharonD007]

When you have health insurance through the Marketplace and get married, you need to update your application because getting married may affect your Premium Tax Credit.  Your Premium Tax Credit is based on expected income for all household members, so when you got married, your spouse's income was included in your household income.

The software can't make an adjustment for this, you would have had to make an adjustment of your advanced premium tax credit through the Marketplace.

Unfortunately, there is nothing you can do about the amount due. The 1095-A is used to complete your Premium Tax Credit Form 8962 and reconcile your Premium Tax Credit. It appears that you have received more premium tax credit in advance than you were qualified for based on your household income. If you do not input your 1095-A, it may cause your tax return to get rejected and may affect your future advance credit payments.

You can review The Health Insurance Marketplace and the TurboTax article What is Form 1095-A: Health Insurance Marketplace Statement  for more information.

If you have a balance due and are unable to pay it, please review the TurboTax article Unable to Pay Your Tax Bill? Here’s What To Do.